NU Online News Service, Jan. 25, 3:41 p.m. EST
White Mountains Re Ltd. said it has agreed to acquire the bankrupt Central National Insurance Company of Omaha from Drum Financial Corp. for $5 million.
In runoff since 1989, Central National has been operated under an order of rehabilitation in the State of Nebraska since 1990. The purchase transaction, among other conditions, is subject to the termination of the rehabilitation proceedings by the court and the approval of the Nebraska Department of Insurance.
Central National's statutory surplus as of Sept. 30, 2009 was $13.3 million. The firm offered life and property and casualty products.
The deal is expected to be completed during the first quarter of this year, subject to regulatory approval.
Allan Waters, president and chief executive officer of White Mountains Re, said in a statement that while the deal is "modest in size," it continues a strategy of "building shareholder value through acquisitions of runoff insurance and reinsurance companies."
The deal represents the sixth runoff acquisition by the company's solutions team.
White Mountains Re is a subsidiary of Bermuda-based White Mountains Insurance Group, Ltd.
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